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SOL’s movements anticipate that there could be great selling pressure.
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If supply exceeds demand, the price of SOL will go down.
Solana (SOL) could face a wave of selling in the coming days that threatens to put downward pressure on its price.
According to data from the Coinglass explorer, More than $227 million in funds were sent to exchanges last weekfigures that have not been seen since March 2024.
As seen in the following graph, the green bars indicate that traders deposited a significant amount of SOL in exchanges during the week from December 29 to January 5.
Generally, when this occurs, Traders could be preparing to sell their holdings of the Solana network’s native currency.
In this way, the supply available for sale increases and, if demand does not grow at the same rate, This may generate downward pressure on the SOL price.
At the time of publication of this note, the price of the fifth most valuable cryptocurrency on the market is $215, 18% below its all-time high of $263 reached on November 23, 2024.
The big question is whether, in fact, SOL’s movements to exchanges put a damper on bullish sentiment on the market as January 20 approaches, the day Donald Trump will take office as president of the United States.
As the date approaches, it is possible that SOL, like other cryptocurrencies, will increase in price. It so happens that Trump, throughout his entire campaign, expressed a position in favor of digital assets and promised to end the persecution against the industryas reported by NoticiasVE.
Coming changes at the Securities and Exchange Commission (SEC) could bring more clarity on solana status. If it were explicitly confirmed that this asset is not considered a security (security)this would facilitate its listing on exchanges without restrictions and pave the way for applications to be approved to launch SOL-based exchange-traded funds (ETFs).
The launch of these financial products could increase liquidity and accessibility for investors more traditional to the native currency of the Solana network.
According to Polymarket, a cryptocurrency betting platform, 73% of bettors believe that these SOL financial products will be approved this year.
However, Brad Thomas, a cryptocurrency market analyst, is not optimistic about the future of Solana and points out that it has no solid reasons to continue growing in 2025. For him, the network “lacks sustainable foundations” and highlights that it is necessary to diversify its uses beyond speculative trading, driven by memecoins.
In that sense, he adds: “Once the boom (for meme cryptocurrencies) subsides, activity on the network could decline, exposing the gaps between SOL’s valuation and its actual utility.” Thomas further states:
“SOL’s long-term success will depend on its ability to maintain meaningful use cases and grow its ecosystem beyond the temporary excitement of memecoins.”
Brad Thomas, market analyst.